AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
JUNE 24, 2025
PUBLIC MEETING 4:00 P.M.
MEMBERS
Justin Jones, Chair, District 3
Rick Cole, Councilmember, District 2
Tyron Hampton, Councilmember, District 1
Jason Lyon, Councilmember, District 7
STAFF
David Reyes, General Manager
Lisa Hosey, Assistant City Attorney
Betty Gao, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.
I
n compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
Language translation services are available for this meeting by calling (626) 74
4-4124 at least 24 hours in advance.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626) 74
4-4124 por lo menos con 24 horas de anticipación.
I
tems on the agenda may not be called in order listed.
Agendas and supporting documents are available on the Internet at http://ww5.cityofpasadena.net/commissions/city-council-municipal-services-committee/ Materials related to an item on this Agenda submitted to the Municipal Services Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”.
PUBLIC COMMENT AT THE MUNICIPAL SERVICES COMMITTEE MEETING FOR JUNE 24, 2025, AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
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Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
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orrespondence will be forwarded to the Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
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CITY OF PASADENA
REGULAR MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
JUNE 24, 2025
PUBLIC MEETING: 4:00 PM
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
N
OTICE IS HEREBY GIVEN that the regular meeting of the Municipal Services Committee will be held on Tuesday, June 24, 2025, at 4:00 p.m., to discuss matters on the attached agenda.
Justin Jones, Chair
M
unicipal Services Committee
I HEREBY CERTIFY that this agenda in its entirety, was posted on the Internet at https://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ and on the Council Chamber Bulletin Board, Room S249, and the Bulletin Board in the rotunda area; City Hall, 100 North Garfield Avenue, this June 19, 2025, by 6:30 p.m. and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution herein below.
Susana Castro
DISTRIBUTION:
MSC Committee Members Central Library General Manager Pasadena Weekly City Council City Clerk Director of Planning and Permitting Pasadena Star-News City Manager Director of Public Works Los Angeles Times Pasadena Now City Attorney Public Information Officer La Opinion Pasadena Journal In compliance with the Americans with Disabilities Act of 1990, listening assistive devices are available from the City Clerk's Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device. Language translation services may be requested with 24-hour advance notice.
Habra servicio de interpretacion disponible para estas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
REGULAR MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
JUNE 24, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
The Municipal Services Committee may take action within its authority on any item listed on this agenda as it deems appropriate following consideration and discussion of the matter.
APPROVAL OF MINUTES
May 23, 2025 (Special Meeting)
1. ELECTRIC RATE STUDY UPDATE
INFORMATIONAL ONLY
Information only items contain no staff recommendations. The committee may, however, take action within its authority relating to informational items on the agenda as it deems appropriate following consideration and discussion of the matter.
2. METROPOLITAN WATER DISTRICT UPDATE BY CYNTHIA KURTZ
3. OPT
IMIZED STRATEGIC PLAN UPDATE
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
ADJOURN
NEW BUSINESS
1 CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
MAY 23, 2025
SPECIAL MEETING
OPENING The Chair called the special meeting of the Municipal Services Committee to order at 2:11 p.m.
ROLL CALL:
Sta
ff:
Councilmember Justin Jones, Chair
Councilmember Tyron Hampton (Absent)
Councilmember Rick Cole
Councilmember Jason Lyon
David Reyes, General Manager of Water and Power
Joaquin Siques, Director of Transportation
Varoojan Avedian, Assistant General Manager, Water and Power Sebastian Hernandez, Principal Planner
Jon Hamblen, Parking Manager
Lisa Hosey, Assistant City Attorney
Betty Gao, Recording Secretary
NEW BUSINESS APPROVAL OF THE WATER AND POWER DEPART MENT’S 2025
WILDFIRE MITIGATION PLAN
David Reyes, General Manager of Water and Power , provided introductory comments, and Varoojan Avedian, Assistant General Manager of Water and Power, summarized the agenda report as part of the PowerPoint presentation on the item , including providing information on background, fire threat map, 2025 plan update, with both responding to questions.
Councilmember Cole advocated for relying on staff and not consultants for future mitigation planning and community outreach efforts, as cost saving efforts, and relying on staff for local community knowledge. In addition, he expressed concerns with the delays in residential utility undergrounding projects and called for a more cost -effective and efficient approach, especially in fire-prone areas.
In regard to Public Safety Power Shutoffs (PSPS), Chair Jones emphasized prioritizing the safety of vulnerable residents, especially those using life -sustaining medical devices or living in high-density housing.
Betty Gao, Recording Secretary, reported that two letters of correspondence were received by the City Clerk’s Office, which was distributed to the Committee, posted online, and made part of the record for this item.
Following further discussion, it was moved by Councilmember Lyon, seconded by Councilmember Cole, to approve the staff
recommendation and forward the item to the City Council for consideration. (Motion unanimously approved ) (Absent:
Councilmember Hampton)
2 The Committee recessed at 2:44 p.m. and reconvened at 2:50 p.m.
BUDGET WORKSHOP — FY 2026 RECOMMENDED OPERATING
BUDGET
a. TRANSPORTATION DEPARTMENT
Joaquin Siques, Director of Transportation , presented the PowerPoint presentation on the department’s Fiscal Year (FY) 2026 recommended operating budget , including providing information on FY 2025 accomplishments, appropriations by category, FY 2026 enhancement requests, FY 2026 work plan, overview of funds, and responded to questions.
In response to Councilmember Cole’s inquiry on Metro Micro (an on- demand rideshare service) , Sebastian Hernandez, Principal Planner, responded that Metro Micro accommodates virtual stops whereas Pasadena Dial-A-Ride is a curb-to-curb transportation service.
Due to below-market parking rates, Councilmember Cole advocated for a review of the parking revenue policy to reduce subsidies for solo drivers, especially considering climate change and growing budget constraints; and rethinking traditional spending approaches and reallocating funds to support a multimodal transportation City.
Councilmember Lyon requested staff to provide additional information on the City’s Dial-A-Ride program, including fiscal data and recommendations to lower the cost per trip.
In response to Councilmember Lyon’s inquiry on parking fees, Jon Hamblen, Parking Manager, stated that the parking system is self - sustaining operationally, but does not fully account for deferred maintenance or future infrastructure needs.
Councilmember Lyon echoed Councilmember Cole’s comments related to the current parking underpricing acts as a subsidy for driving and advocated for adjusting parking fees closer to market rates, emphasizing fiscal responsibility and the need to plan for future infrastructure costs.
Chair Jones asked staff to provide a detailed performance data report and information on user feedback on the Dial-A-Ride program.
Betty Gao, Recording Secretary, reported that one letter of correspondence was received by the City Clerk’s Office, which was distributed to the Committee, posted online, and made part of the record for this item.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
3 ADJOURNMENT On the order of the Chair, the meeting of the Municipal Services Committee was adjourned at 3:59 p.m.
AT
TEST:
________
____________
Betty Gao
Recording Secretary
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
4 ITEM #1
5 6
7 8
9 10
11 12
ITEM #3
13 14
15 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 1
Pasadena Water and Power Optimized
Strategic Plan: Annotated Outline
Outline
June 2025
Overview: this document presents an outline for the final Optimized Strategic Plan report. Pending additional direction from MSC, E3 and PWP will work to transform this outline into a final report that includes content and action items consistent with the direction provided by MSC and City Council at previous meetings (to focus on Case Studies that achieve 100% annual/hourly carbon-free energy while retaining Glenarm as a reliability backup) 1 EXECUTIVE SUMMARY
Statement of PWP’s commitment to addressing the climate crisis and goals of Resolution 9977; progress made to date by PWP to procure clean energy; purpose of the OSP and importance of a flexible, adaptive plan to achieve goals; collaborative and transparent process for plan development; brief summary of technical analysis to support plan development; summary of action plan developed based on City Council’s guidance to focus on case studies that achieve 100% annual/hourly carbon-free energy while retaining Glenarm as a reliability backup; plans for the 2028 Waypoint
2 INTRODUCTION
2.1 BACKGROUND
Review of history and context leading to City Council’s adoption of Resolution 9977 in 2023; description of goals established by Resolution 9977; description of PWP as a municipally owned, community-first utility; actions taken to date further the objectives of Resolution 9977
2.2 RESOLUTION 9977 & PLANNING OBJECTIVES
Carbon-Free
Introduction of the city’s goal to source 100% of electricity from carbon-free sources by end of 2030; discussion of importance of city’s ambition and leadership, especially in a time when federal policy environment is unstable and impacts of climate emergency have become acute and immediate
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Pasadena Water and Power Optimized Strategic Plan 2
Affordable
Discussion of the importance of maintaining affordable rates: supplying basic everyday needs of community at affordable cost as cost of living is rising, attracting business to a vibrant commercial hub in Southern California, enabling local transition to electric vehicles (crucial to the state’s economy-wide decarbonization efforts); comparison of PWP electric rates to peers and neighbors Reliable
Discussion of reliability as an essential foundation for modern society; spotlights on recent reliability events in California and Texas to illustrate severe consequences of failing to meet reliability needs; acknowledgement of increasing complexity of maintaining reliability as grid transitions to high penetrations of renewables and storage Equitable
Discussion of diversity of Pasadena’s residents and businesses; the importance of making sure that transition to a carbon-free system allows all residents the opportunity to benefit from the city’s ambitious goals and ensure customers pay equitably for common facilities that benefit all Safety
Discussion of public safety considerations not captured in four principal objectives of Resolution 9977 (e.g. wildfire risk)
2.3 PURPOSE OF AN OPTIMIZED STRATEGIC PLAN
Description of origins of the concept of an “Optimized Strategic Plan”; articulation of purpose of efforts (to create a roadmap that lays out the key steps and future decision points that will best position Pasadena to achieve its goal to source all electricity from carbon-free sources by the end of 2030 while maintaining reliability and limiting cost impacts to customers); introduction of the concept of “Planning Targets” to facilitate achievement of the Resolution 9977 goals: targets for certain types or categories of resources based on current outlook – but that are designed (and expected) to evolve as market factors and circumstances change (i.e. not a static goal, but an evolving expectation)
2.4 PROCESS FOR DEVELOPING AN OPTIMIZED STRATEGIC PLAN
Industry-Leading Analytics
Discussion of the importance of robust analytics to inform sound policymaking regarding complex topics; highlights of scope of analyses approved by City Council conducted under direction of City Manager’s Office and with continuous input from PWP
Collaboration and Transparency
Description of various channels for outreach and engagement with stakeholders and decisionmakers (Technical Advisory Panel, Environmental Advisory Commission, Municipal Services Committee, City Council, Community Meetings)
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Pasadena Water and Power Optimized Strategic Plan 3
2.5 COMPLEMENTARY PLANNING EFFORTS & ONGOING STUDIES
2022 Power Delivery Master Plan
Review of key outcomes and ongoing initiatives originating from the 2022 PDMP 2023 Integrated Resource Plan
Review of key outcomes and conclusions identified in the 2023 IRP Ongoing Cost of Service and Electric Rate Study
Description of purpose of ongoing rate study and relationship to work completed in the OSP 3 OUR EVOLVING SYSTEM
3.1 OUR SYSTEM TODAY
Our Customers’ Needs
Summary of PWP’s current customer mix and expected demographic changes; discussion of changes in customer preferences and the role of electrification, energy efficiency, and distributed generation.
Glenarm Power Plant
Description of the Glenarm Power Plant and the roles it currently plays in PWP’s portfolio as a local reliability resource (ensuring reliability of PWP system when loads exceed import capability, during transmission/distribution contingencies, system maintenance).
Transmission Interconnection
Overview of PWP’s interconnection to CAISO, including descriptions of CAISO/SCE transmission facilities, TM Goodrich Receiving Station, corresponding opportunities (allows PWP to import generation from owned and contracted resources and access to the broader CAISO wholesale market) and risks (contingencies at TM Goodrich or upstream transmission lines could limit ability to import at full capability, e.g. during Eaton Fire); short description of interconnection to LADWP and its limited role as a black start resource due to phase differences External Resources
Description of current and future external resources owned by and under contract to PWP; highlights on plans for plant retirements and new contracts for resources entering the portfolio by 2030
CAISO Wholesale Market
Description of PWP’s status as a CAISO member and market participant, historical reliance on the market for unspecified market purchases as part of supply mix; description of changing dynamics in CAISO market due to increasing penetrations of renewable resources according to state policy and expected future outlook as solar, storage, wind development accelerate (including increasing curtailment, negative prices, and resource adequacy saturation effects); discussion of implications 18 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 4
of changing market dynamics and ongoing regionalization efforts (EIM, EDAM) through which PWP stands to benefit
Distribution System
Description of PWP’s internal physical distribution system and its role in the delivery of power from Glenarm and TM Goodrich to customers
3.2 ACTIONS UNDERWAY: LAYING THE FOUNDATION
Establish Aggressive Goals & Programs for Energy Efficiency Savings Discuss efficiency cost effectiveness determination (including social cost of carbon); description of current energy efficiency programs available to residential and commercial customers Exit the Intermountain Power Project
Historical perspective on role and significance of Intermountain Power Project (IPP) in PWP’s energy mix; review of circumstances leading to PWP’s decision to exit IPP; description of terms and conditions for PWP’s exit from Intermountain Power Plant; impacts of decision to exit on PWP’s energy supply and consequential greenhouse gas emissions Integrate New Wind, Geothermal, Solar, and Storage Contracts Description of new resources procured since 2023 IRP was filed, including Bonanza Solar (105 MW) and Storage (55 MW); Grace Solar (50 MW); Geysers Geothermal (25 MW); Coso Geothermal (10 MW, expanding to 20 MW in 2030s); and Cal Wind (20 MW)
Develop Local Battery Storage at Glenarm Power Plant
Overview of PWP’s current plans to develop a 25 MW 4-hr battery storage resource at the Glenarm/Broadway power plant sites; current status of the project; and consideration of future opportunities to expand capabilities by adding additional capacity and duration Replace and Improve Internal Distribution Lines
Status update regarding PWP’s efforts to replace internal distribution lines as identified in 2022 PDMP; description of how replacement of distribution lines results in system improvements that will benefit efforts to transition to carbon-free electricity supply (e.g. new underground distribution lines are expected to reduce frequency of line outages and resulting contingencies, reducing frequency with which Glenarm is called upon to operate during contingency conditions) Install Advanced Metering Infrastructure
Progress update on PWP’s installation of Advanced Metering Infrastructure (AMI); description of opportunities enabled by AMI (e.g. more advanced retail rate structures like time-of-use pricing; ability to implement more advanced customer programs to reduce or shift loads during critical periods)
3.3 TRACKING OUR PROGRESS
Defining Clean Energy Metrics
Overview of PWP’s three clean energy metrics (calculation methodology and interpretation) 19 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 5
Current Outlook
Presentation of outlook for clean energy metrics based on resources already contracted to PWP through 2030; acknowledgement of ongoing efforts to maintain current outlook through the Clean Energy Tracker website
4 STUDY PROCESS & TECHNICAL FINDINGS
4.1 SCOPE OF OSP ANALYSES
Brief description of the OSP Scope of Work as authorized and approved by City Council
4.2 CASE STUDIES
Overview of Case Studies
Descriptions of the various case studies created in the OSP modeling process, including “core cases” (Mature Technologies Only, Mature Technologies + Long Duration Storage, Mature Technologies + Hydrogen) and various sensitivities (variations in level of local resource deployment, market flexibility, Glenarm as a back-up resource for reliability) Modeling Methodology
Brief description of analytical tools used to create each case study, including long-term capacity expansion and loss-of-load-probability modeling
Portfolio Results
Summary of highlights from portfolio analysis, including (1) new resource needs for each portfolio; (2) energy mix associated with each portfolio; (3) cost and/or rate impacts associated with each portfolio; (4) other factors or considerations that differentiate the portfolios and their viability City Council Direction
Description of direction received from MSC & City Council, including (1) to focus on four case studies that achieve 100% of annual/hourly needs while retaining Glenarm as a reliability backup resource for the purposes of defining an optimized plan; and (2) create plans to accelerate local solar development
4.3 KEY FINDINGS
Summary of key findings from technical analysis that inform action plan; contextualization in broader literature of electric sector decarbonization studies 20 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 6
5 OPTIMIZED STRATEGIC PLAN: MEETING RESOLUTION 9977 GOALS BY END OF 2030
5.1 PROCURE ADDITIONAL UTILITY-SCALE RENEWABLE AND STORAGE RESOURCES WITH A
FOCUS ON RESOURCE DIVERSITY
Overview: procurement of utility-scale renewables and battery storage presents the greatest opportunity rapidly scale carbon-free energy at lowest costs; meeting carbon-free objectives will require PWP to continue to expand its portfolio of resources within the CAISO footprint and potentially beyond, seeking out a diverse portfolio of resources that is suitably shaped to meet its needs and manage wholesale market risks
Resource Options
Description of utility-scale carbon-free technology options commercially available today, including solar PV, wind, geothermal, and battery storage; spotlights on differences among resources and resource-specific considerations that may affect the viability of their development (e.g. resource potential and geographic constraints, output profiles, dependencies on transmission investment, lead times for development)
Insights from Portfolio Analysis
Discussion of the role of external resources as indicated by studies (across all scenarios that maintain Glenarm as backup, external resources continue to represent the predominant supply of energy to serve PWP’s loads); discussion of the importance of resource diversity from the perspective of (1) PWP’s hourly clean energy goals, (2) broader CAISO market risks, and (3) technology supply risks.
Procurement Processes & Timelines
Enumeration of mechanisms to procure utility-scale renewables, including continued procurement through SCPPA and the use of independent RFPs to seek resources most tailored to PWP’s needs; enumeration of steps in procurement processes (e.g. RFP issuance, bid evaluation, contract negotiation, construction) and corresponding timelines and implications for adding new utility- scale resources to the portfolio by end of 2030
Key Uncertainties & Risks
Discussion of uncertainties that may impact resource development that are beyond PWP’s control, including (1) cost (as impacted by continued supply-chain strains and inflation, potential for tariffs on imported goods, and the uncertain future of the Inflation Reduction Act); and (2) risks associated with off-system sales (e.g. market price and curtailment risk); and (3) timelines for resource development
Action Items
Identification of planning targets for new utility-scale renewables and energy storage reflecting range observed in OSP Case Studies as directed by City Council; description of plans to secure new resources, including:
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Pasadena Water and Power Optimized Strategic Plan 7
Continue to leverage SCPPA membership to facilitate procurement Pursue independent resource development by issuing all-source RFPs specifically tailored to meet PWP’s unique needs for utility-scale carbon-free resources
5.2 ACCELERATE DEVELOPMENT OF LOCAL SOLAR AND STORAGE RESOURCES Overview: continued efforts to develop local carbon-free resources will necessarily supplement utility-scale resource development, as constraints on import capability can limit ability to import electricity to meet all needs; potential benefits that are unique to local resources include ability to displace output from Glenarm during peak periods, increased local resilience, and increased community engagement in energy supply; despite dense, urban footprint, potential to develop local resources is significant, and PWP has many tools at its disposal to do so, and must work to determine the most cost-effective balance of those tools for customers Technical Potential
Review of technical potential results developed in Local Solar and Storage study, with emphasis on (1) total technical potential, (2) breakdowns between residential/commercial and renter/own- occupied rooftop and parking lots, and (3) municipally-owned properties and other potential large- scale opportunities; comparisons of scale of individual installations (e.g. representative sizes for residential & commercial rooftops, parking lots) and implications of system size for developing resource at scale
Insights from Portfolio Analysis
Review of drivers of local reliability needs and conditions under which local generation resources are needed; discussion of the potential benefits of local solar and storage resources, including: (1) ability to meet peak needs when demand exceeds 280 MW import limits (displacing need for Glenarm as a peaking resource), (2) increased local resilience during extreme events, (3) increased customer engagement and community awareness of city energy supply; discussion of tradeoffs between local vs. external resources in supporting city’s goals (costs, options, impacts on clean energy metrics, local resilience)
Options to Accelerate Local Resource Development
Review of likely level of solar and storage adoption under current NEM rate design; discussion of different approaches to accelerate development of local resources, including (1) customer adoption in response to rate design (e.g. net energy metering or alternatives); (2) municipally- owned resources on municipal properties in coordination with other city agencies; (3) resources developed by private investors under power purchase agreements, feed-in tariffs, or alternatives; (4) community-based resources and/or green power rates, etc.; (5) additional customer incentives and loan assistance programs; (6) efforts to streamline permitting; and (7) additional public outreach and education
Cost & Equity Considerations
Discussion of various considerations relating to (1) managing rate increases for PWP customers and (2) enabling low-income customers to participate in transition, including:
Loan assistance for low-income/disadvantaged communities 22 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 8
Rate impacts associated with net energy metering and alternatives Avoiding cross-subsidization of customer groups
Project Spotlight: Sunset Reservoir
Brief overview of the potential solar project currently under consideration by PWP at the Sunset Reservoir (up to 2 MW of new solar capacity)
Action Items
Identification of planning targets for local solar and storage resources (focused on technology, leaving flexibility to determine the most cost-effective and equitable mechanisms) based on OSP Case Studies as directed by City Council; description of plans to identify additional city-owned sites that are best suited for deployment of larger-scale solar resources (100 kW+); discussion of need for partnership with local institutions (e.g. PUSD, CalTech, other large commercial customers); discussion of plan to revisit Net Energy Metering compensation structure once AMI installations make advanced rate structures possible (balancing rate of customer adoption with cost impacts to non-participants); description of comprehensive local solar plan
5.3 DESIGN PROGRAMS AND/OR RATES TO ENCOURAGE LOAD FLEXIBILITY AND MANAGED
ELECTRIC VEHICLE CHARGING
Overview: active AMI project will be critical to enabling load flexibility and demand response at scale; description of PWP’s starting point on ramping up demand response programs; managed EV charging and commercial HVAC loads are the largest flexible end uses in the city; partnering with key commercial/institutional customers will be critical first partners for leveraging flexible load resources; PWP with the approval of City council will develop time-of-use rates to enable load flexibility; there are many mechanisms to procure demand response including retail rates, voluntary/behavior demand response programs, direct utility control/interruptible load, meter-level firm service limits, third-party aggregation, and VPPs
Dependency Upon AMI
Overview of the AMI project timeline and role of AMI in demand response and flexible load programs
End Uses Suited for Flexibility
Discussion of end uses and sectors with the most demand response potential and customer types with the most potential or greatest willingness to participate.
Time of Use Rates
Description of time-of-use rates, different structures/designs; purpose of time-varying rates; key considerations in defining time-of-use periods appropriately Virtual Power Plants & Microgrids
Description of the building blocks of VPPs; pathways to building a VPP in Pasadena; procurement mechanisms; infrastructure requirements; types of customers and end uses best suited to VPP and microgrid applications
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Pasadena Water and Power Optimized Strategic Plan 9
Vehicle Charging Infrastructure
Discussion of additional infrastructure required to enable managed EV charging. Description of EV specific programs/rates. Benefits of active managed charging versus passive managed.
Other Program Options
Present opportunities for voluntary/behavioral demand response programs. Discussion of program structures and key elements of successful program design.
Energy Efficiency
Discussion of the continued value of energy efficiency as a customer side, carbon-free resource.
Action Items
Implement voluntary/behavioral demand response programs; develop partnerships with large commercial/institutional customers and identify options for early pilots; identify opportunities to work with third party aggregators to develop DR programs and VPP; develop a comprehensive transportation electrification strategy
5.4 TRANSITION GLENARM TO A STATUS OF “RELIABILITY BACKUP” Overview: Glenarm currently serves a crucial role in preserving local system reliability, and despite the expansive scope of solutions evaluated in the OSP analysis, no practical opportunities to entirely eliminate its need were identified; preserving Glenarm as a “reliability backup” resource even as the City’s energy supply transitions to carbon-free resources is a least-regrets strategy that helps preserve optionality and flexibility for a longer-term transition Current Operating Patterns
Discussion of current conditions that require Glenarm to operate (peak demand, system contingencies, system maintenance, other unforeseen events) Alternatives to Meet Local Reliability Needs
Discussion of options evaluated to maintain local reliability without requiring Glenarm, including (1) local solar and storage, (2) local solar, storage, and long-duration storage, (3) retrofit for operations using green hydrogen, and (4) investment in new transmission Resource Adequacy Value
Overview of PWP’s obligations to comply with resource adequacy requirements as a member of CAISO; description of how conventions for need determination and resource accreditation are evolving and the impacts that will have on RA value for different types of resources (declining marginal value for renewables and storage); discussion of how maintaining Glenarm as a firm resource mitigates risks associated with future changes to RA requirements until a “clean firm” alternative emerges
Anticipated Conditions for Future Operations
Description of the conditions under which Glenarm would operate as a “reliability backup” resource, including (1) to ensure local reliability during transmission/distribution contingencies, planned maintenance to the system, or otherwise unanticipated extreme events, and (2) when called upon by CAISO to dispatch during periods of very high wholesale electricity prices or 24 DRAFT FOR MUNICIPAL SERVICES COMMITTEE REVIEW
Pasadena Water and Power Optimized Strategic Plan 10
reliability concerns; discussion of the cost and environmental implications of operating Glenarm in response to CAISO dispatch instructions
Additional Mitigation Options
Discussion of the potential opportunity to source pipeline-quality renewable natural gas that could be delivered using existing infrastructure to fuel Glenarm during limited periods of operations as a short-term bridge while plant remains in service; corresponding potential costs Action Items & Signposts
Commitment to monitor and report on ongoing operations of Glenarm and circumstances requiring its operation
5.5 TRANSITION TO A “BALANCED” POSITION IN THE CAISO WHOLESALE MARKET Overview: as a member of CAISO, PWP buys and sells energy on a daily basis; participation in wholesale markets is a foundational element of modern electricity systems and the value proposition of organized markets is clear and significant; PWP intends to continue its participation in the market but its role will change: whereas today PWP purchases a large share of its annual energy needs from CAISO, in the future, PWP will balance its portfolio such that sales of surplus carbon-free electricity into the market meet or exceed PWP’s purchases; in this manner, PWP will ensure that its annual carbon-free electricity production is sufficient to meet its needs while preserving the benefits afforded by wholesale market participation; PWP will pursue a balanced position in the market to mitigate risks associated with relying heavily on off-system sales of excess carbon-free energy supply
5.6 FOSTER COLLABORATION/PARTNERSHIPS WITH KEY LOCAL STAKEHOLDERS AND
INDUSTRY GROUPS
Discussion of importance of collaboration with local stakeholders and industry groups to maintain a position of leadership and enable progress at a rapid pace
5.7 IDENTIFY FINANCIAL STRATEGIES AND EXTERNAL FUNDING TO MITIGATE RATE IMPACTS Discussion of financial strategies and potential sources of external funding that could help manage cost increases associated with achieving goal
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Pasadena Water and Power Optimized Strategic Plan 11
6 BEYOND 2030: PRESERVING OPTIONALITY AND FLEXIBILITY TO
MEET LONG-TERM NEEDS
6.1 PURSUE OPTIONS TO EXPAND GOODRICH AND ADD A SECOND INTERCONNECTION IN
PARALLEL
Discussion of how long-term transmission expansion provides the clearest opportunity for a long- term transition plan to retire Glenarm based on technologies available today TM Goodrich Expansion
Presentation of detailed roadmap for expansion of capacity at Goodrich Second CAISO Interconnection
Overview of processes necessary to develop a second interconnection; discussion of how a second interconnection would differ from Goodrich expansion in terms of scale, benefits, and timeline for development
6.2 PURSUE PILOT PROJECT FOR EMERGING LONG-DURATION STORAGE TECHNOLOGIES PWP will look for opportunities for pilot long-duration storage projects. PWP has received two grants for feasibility studies for siting LDES projects within the city and has issued an RFI/RFP for projects development.
Options for Long-Duration Energy Storage Technologies
Review of technoeconomic characteristics of different options for long-duration storage Market Readiness
Discussion of market readiness of different long-duration storage technologies
6.3 MONITOR LANDSCAPE OF OTHER EMERGING TECHNOLOGIES
Discussion of nuclear, green hydrogen, offshore wind, enhanced geothermal as longer-term options to monitor that may either (1) help meet local reliability needs and (2) contribute to PWP’s clean energy goals
7 CONCLUSION
Short synthesis/summary of action items organized in a clear and accessible manner to demonstrate progress towards goals
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